Aug. 7 (Bloomberg) -- TDC A/S, Denmark’s biggest phone
company, fell the most in more than four years in Copenhagen
trading on concern that regulation will squeeze revenue and
profit.

TDC is struggling with declining revenue amid tough
competition in the Nordic mobile-phone market. The company,
which today maintained its full-year revenue and profit
forecast, said tougher regulation on roaming and broadband
wholesale prices will increasingly hurt sales and earnings from
next year.

TDC plunged as much as 8.5 percent, the most since May 21,
2010. The stock declined 8.4 percent to 51.60 kroner at 3:52
p.m. in the Danish capital, where the company is based, with
trading volume more than double the three-month daily average.

“There are indications that 2015 and 2016 forecasts are
likely to see negative revisions from various regulatory
initiatives,” Jesper Herholt Jensen, an analyst at Nordea Bank
AB in Copenhagen, said in a note to clients. He repeated a hold
recommendation on the stock.

TDC said the termination of retail roaming charges within
the European Union by the end of 2015 will hurt annual revenue
by as much as 300 million kroner ($54 million). TDC’s gross
profit will suffer by as much as 150 million kroner from tougher
regulation this year, rising to as much as 175 million kroner in
2015 and 250 million kroner the year after, the company said.

TDC said it still anticipates 2014 Ebitda of more than 9.6
billion kroner.

The company has also lost some of its large public
contracts in Denmark, which will hurt its revenue further,
Morten Imsgard, an analyst at Sydbank A/S, said in a note,
repeating a hold recommendation on the stock.

‘Big Challenges’

“TDC faces big challenges to protect profits against
declining sales in 2015,” said Imsgard, who is based in
Aabenraa, Denmark. “It’s essential that TDC secures a
significantly better organic growth rate in 2015 if the company
should be able to uphold its high dividend payments in coming
years.”

Before today, TDC shares had gained 7.1 percent this year,
compared with a 2.4 percent decline in the STOXX 600
Telecommunications Index.

“The share price has performed well this year driven by
the prospects of mobile market consolidation,” Nordea’s Jensen
said. “At the current level, we believe the share price is
already partly discounting the benefits of a consolidated mobile
market leaving limited near-term upside if this scenario does
not materialize.”